Obscure
Credit Headers: The Unseen Data Firehose
Your personal data isn't just sitting in a credit bureau vault. It's being actively spread across the internet through a little-known practice called credit header sales.
What are Credit Headers?
Credit headers are a snapshot of your key identifying information:
- Full name
- Addresses
- Phone numbers
- Emails
- Even your Social Security Number and other identifiers
Credit bureaus can freely sell this data, and they do, to a wide range of entities including marketers and data brokers.
Why Header Sales Hurt
- Data proliferation: Your sensitive information ends up in countless hands, increasing the risk of identity theft and privacy violations.
- Lack of regulation: Unlike credit reports, credit header sales are largely unregulated, leaving you with little control over your data.
- Data brokers: Credit bureaus often sell to (and even buy) data brokers, further fueling the unregulated data trade.
The problem is so bad that Consumer Financial Protection Bureau (CFPB) is taking action.
The CFPB has proposed new rules to curb credit header sales. However, industry lobbying efforts are strong, and the outcome is uncertain.
For more discussion about Credit Headers, see this post by Jeff Jockisch on LinkedIn.
The Deeper Issue: Data Brokers and the Resellers Exemption
The root of the problem lies in the unregulated data broker industry, which thrives on the Resellers Exemption in the Fair Credit Reporting Act (FCRA). This exemption allows data brokers to buy and sell personal data without any oversight.
What Can You Do?
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- Be aware: Understand how your data is being used and sold.
- Opt out: Where possible, opt out of data sharing and marketing lists. Call ObscureIQ for help.
- Support privacy legislation: Advocate for stronger data privacy laws.